SolarEdge has lauded its global strength as strong sales in Europe and Australia helped offset a decline in the US in the second quarter of the year.
The inverter manufacturer witnessed revenue for the three months ended 30 June 2020 reach US$331.9 million, towards the top end of guidance it issued within its Q1 2020 results disclosure. While this was indeed down some 23% on the record quarterly revenue it produced in Q1 2020, its revenues edged up 2% year-on-year.
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Inverter shipments stood at 1.44GW, again down on the 1.85GW recorded in Q1 2020 but an increase on the 1.3GW shipped in the corresponding period a year ago. That comprised of 3.5 million power optimisers and 142,000 inverters.
The firm’s gross margin of 31% – slightly higher at 33.1% when restricted to the sale of just solar products – also stood up to the firm’s previous guidance.
Zvi Lando, chief executive at SolarEdge, pointed in particular to the company’s “global strength” for having produced the positive Q2 results, with performance in the Netherlands, Germany, Italy and Australia having offset a decline in demand from a pandemic-stricken US market last quarter.
Sales in North America reached US$124 million in Q2 2020, down “significantly”, Lando said, while European sales totalled US$144 million.
“While the pandemic has created many operational challenges, I am confident in our financial strength and grateful for the trust of our customers and dedication of our employees which enable us to continue to focus on product innovation and execution of our long term plans even in these challenging times,” he said.
But while SolarEdge’s performance reached the top end of guidance in Q2, it has forecast a tougher Q3.
Its outlook for the three months ended 30 September places revenues in the range of US$325 – 350 million (US$305 – 325 million from solar products alone) and a gross margin of between 32 – 34%. While that performance is in line with analyst expectations, even topping that guidance would represent a near-15% drop on the US$410 million revenue figure SolarEdge reported in Q3 2019, hinting towards a longer tail for a pandemic than perhaps initially thought.
Nevertheless, SolarEdge’s share price jumped by around 12% in after-hours trading following publication of the results, sending the firm’s market cap towards the US$10 billion mark.